SCHUMER HELPS DELIVER $65 MILLION IN NEW MARKETS TAX CREDITS TO NATL DEVELOPMENT COUNCIL URGES GROUP TO FUND REVITALIZATION OF GLENWOOD POWER PLANT, WHICH COULD INJECT NEW LIFE INTO YONKERS ECONOMY
brbrSchumer Announces His Successful Efforts to Get $65 Million in Tax Credits for Natl Development Council - The Group That Distributes Tax Credits to Local Projects like the Glenwood Power Plant RedevelopmentbrbrEffort to Spur Development of Iconic Glenwood Plant Needs About $20 Million in Tax Credits to Get Construction Started This Year Now That NDC Has Received Large Allocation, Schumer Urges That They Other Awardees Help Fund ProjectbrbrSchumer: Todays News Clears Key Hurdle in Funnelin
Today, U.S. Senator Schumer announced that the National Development Council (NDC) has received $65 million in New Markets Tax Credits, and urged that they join other awardees in delivering a critical piece of that funding to longblighted Hudson Valley landmark known as the Glenwood Power Plant. Schumer helped deliver this allocation of tax credits to National Development Council from the U.S. Treasury Department, which clears a key hurdle in getting Yonkers developers the approximately $20 million in tax credits needed to start construction of a new hotel and recreation area, generate hundreds of new jobs and bring new economic activity to this waterfront parcel for the first time in decades.
Schumer fought successfully at year's end to extend the New Markets Tax Credit (NMTC), and during a visit to the Glenwood Power Plant in January 2013 urged the Department of Treasury to strongly consider an allocation for the National Development Council - the entity that applies for these federal tax credits and distributes them to local projects like the Glenwood Plant, if awarded. Schumer is now pushing for the NDC to deliver these credits to this Yonkers project, which would translate into real capital that could allow the project construction to begin in 2013.
"Today I'm pleased to announce that we are one step closer to getting construction started at the Glenwood Power Plant in Yonkers, thanks to news that National Development Council will receive $65 million in federal New Markets Tax Credits," said Schumer. "To put it simply: National Development Council is the middleman in getting these credits to projects like this one in Yonkers. Now that the NDC are winners, I'm urging that this revitalizing waterfront project be given the tax credits necessary to redevelop this centuryold plant, create hundreds of jobs, boost the local economy and honor the city's legacy."
Schumer continued, "Starting construction this year is now more likely than ever, and I look forward to working with the NDC and other awardees to give the Glenwood Power Plant the chance it deserves to spur development along the waterfront through this mixeduse convention center, restaurants and more. Let's get Yonkers the tax credits that it needs and deserves."
Schumer joined Treasury Assistant Secretary for Financial Institutions Cyrus AmirMokri, on a press conference call to announce the recipients of the 2012 round of the New Markets Tax Credit Program and the important role the Program has played in revitalizing lowincome and distressed communities since it was established by Congress in 2000. The National Development Council received an allocation of $65 million in credits. Schumer highlighted that the National Development Council has done great work thus far in spurring economic development throughout New York.
Schumer visited the Glenwood Power Plant in January and urged that the Treasury and entities like National Development Council to prioritize Yonkers' project in their selection process. This transformative plan will use the historical structure to create a unique tourism, business and cultural icon on the Hudson River. Once complete, the Power Plant will be home to conference centers, cafes, restaurants, a courtyard atrium, exhibit hall, and a hotel. This destination will offer residents from the Hudson Valley and New York City, as well as tourists from around the world, a fivestar resort to stay in while they spend time in Yonkers on business or leisure. The Conference and Exhibition Hall will allow the Power Plant to host forums, events and cultural programs. The development will also include upgraded and increased parklands and recreational opportunities, including a state of the art pier giving New York City residents and tourists a unique access point to this future development and everything downtown Yonkers has to offer. Schumer said the allocation of NMTC for the plant will support a $250 million, publicprivate funded redevelopment project that preserves and revamps the 270,000 squarefoot Glenwood Power Plant situated on the shore of the Hudson, and is scheduled to open in 2016. This project is expected to create as many as 1,000 permanent jobs and as many as 2,000 construction jobs in the shortterm.
Schumer fought to extend the New Markets Tax Credit program in the yearend fiscal cliff deal, to help leverage private investment and jumpstart construction efforts in communities like Yonkers. The NMTC program was established in 2000 in order to spur new or increased business investments into operating businesses and real estate projects in eligible urban communities. In exchange for investing in qualifying projects, individual investors and corporations can receive a tax credit on their federal income tax return, creating an incentive for individuals to invest. Developer Lela Goren is seeking approximately $20 million in New Markets Tax Credit allocation to streamline the construction process and potentially free millions more in financing.
On January 3, 2012, President Obama signed the American Taxpayer Relief Act of 2012 which included an extension of the New Markets Tax Credit Program for 2012 and 2013. The tax credit allocation authority is $3.5 billion for each year. The CDFI Fund through the Department of Treasury is currently reviewing applications received under the 2012 round and plans to announce the awards in April. Schumer today urged Treasury to prioritize Yonkers' project in their selection process.
The Glenwood Power Plant was constructed between 1904 and 1906 as part of the New York Central Railroad's initial push to replace its steam engines through electrified rail lines. While it served in this capacity for thirty years, NYCR sold the power station to Con Edison in 1936 when it became more costeffective for the company to purchase electricity rather than manufacture it internally. Under new management, Glenwood functioned for another thirty years as a generator powering the surrounding community. The station was finally shuttered in 1968 when Con Edison implemented new technologies that rendered Glenwood's aging turbines obsolete. Since then, the building has stood idle and vacant. Despite some initial plans to demolish the building in the years that followed, the Preservation League of New York State recognized Glenwood's lasting architectural value and selected it as one of the League's "Seven to Save" properties in 2008. After a subsequent study confirmed that much of the building can be reused and its iconic smokestacks kept intact, much of the Yonkers community has rallied around the $200 million construction project intended to transform the building and revitalize the waterfront.